Shell and the state Petronas oil company of Malaysia finalised a contract on Sunday to develop a giant oil field in Iraq.
In December, Shell and Petronas beat a rival bid from France's Total and CNPC of China to develop the 12.6 billion barrel Majnoon field in southern Iraq.
The BBC reports the field currently produces 46,000 barrels per day. Shell and Petronas have pledged to increase the output to 1.8 million barrels per day.
The deal was signed at Iraq's Oil Ministry in the presence of Oil Minister Hussain al-Shahristani and Mounir Bouaziz, an executive of Shell Gas and Power.
Royal Dutch Shell owns 60% of the venture, with Petronas owning the remainder.
The joint-venture, which includes a 20-year service contract, will see the companies receive a fee of $US1.39 per barrel.
Iraq wants to triple its current daily output over the next few years from about 2.4 million barrels. It needs the expertise of foreign companies to do so.
